Displaying items by tag: Acquisition
Philippines: LafargeHolcim has agreed to sell its 85.7% share in Holcim Philippines to San Miguel Corporation for US$2.15bn. Holcim Philippines operates four integrated cement plants and one grinding plant. The deal is expected to close in the fourth quarter of 2019. It will be subject to regulatory approval.
“With the divestment of our activities in the Philippines, we are completing our exit from the increasingly hyper-competitive arena in South East Asia. While this decision is based on our strategic portfolio review, we have reached very attractive valuations allowing us to achieve a new level of financial strength,” said Jan Jenisch, chief executive officer (CEO) of LafargeHolcim.
Raysut Cement confirms plans to buy Sohar Cement
07 May 2019Oman: Raysut Cement has confirmed its plans to buy a 1.7Mt/yr grinding plant owned by Sohar Cement based in Sohar. The acquisition also includes purchasing the company’s distribution network, according to the Oman Daily Observer newspaper. Sohar Cement holds a 70% stake in the business, with UAE-based Fujairah Cement Company owning the remaining share.
India: Sagar Cement has completed its acquisition of Jajpur Cements at Jajpur in Odisha at a cost of US$16m. It now plans to build a new 1.5Mt/yr cement grinding plant at the site for US$44m. The project is subject to regulatory approval but it is scheduled for completion by March 2021.
Malaysia/Singapore: Switzerland’s LafargeHolcim has signed a deal to sell its 51% stake in Lafarge Malaysia to YTL Cement for US$396m. Lafarge Malaysia operates three integrated cement and two grinding plants. With the divestment, LafargeHolcim will fully exit the Malaysian market. LafargeHolcim has also signed an agreement with YTL Cement Singapore for the divestment of its entire 91% share in Holcim Singapore.
YTL Cement is part of YTL Corporation, a Malaysian infrastructure conglomerate, which is active in cement production, construction, property development and utilities. The deal is expected to be completed within the second quarter of 2019. It is subject to approval by regulatory bodies.
True North buys majority stake in Shree Digvijay
17 April 2019India: Private equity company True North has purchased a 54% stake in Shree Digvijay for a reported US$17m from Brazil’s Votorantim Cementos. Other companies bought the rest of Votorantim’s 75% share in the business, according to Bloomberg. True North signed a deal to buy the cement producer in late 2018. Shree Digvijay operates an integrated cement plant at Jamnagr in Gujarat.
Italy: Buzzi Unicem has purchased the Testi integrated cement plant at Greve and the Borgo San Dalmazzo and Arquata Scrivia grinding plants in Piedmont from HeidelbergCement’s subsidiaries. The enforceable agreement is expected to be completed by the end of July 2019. No value for the deal has been disclosed. Buzzi Unicem said it was making the acquisitions as part of its plan to strengthen its position in the national market.
Hima Cement to return land in Tororo to local residents
08 April 2019Uganda: Hima Cement has agreed to return land it acquired in the Mwello Parish of Tororo District to the local residents due to mistakes made by its land agent. The company’s agent, Optima Mining and Minerals, allegedly purchased land from residents who did not hold the necessary paperwork, according to the Daily Monitor newspaper. The agent then intended to apply for a lease on the land from Tororo District Land Board.
Dunstan Ndyaguma, Optima’s managing director, was advised by the commission to obtain a lawyer to learn about the land tenure system in the district. He was also described as a ‘dangerous’ man because he had manipulated local residents in his dealings with them.
Hima Cement, a subsidiary of LafargeHolcim, wants to build a US$250m new cement plant in the area. It has warned that the project may be moved to Kenya instead due to the difficulties in obtaining land.
Colacem buys Cemitaly's Spoleto cement plant
03 April 2019Italy: Colacem says has purchased Cemitaly's Spoleto cement plant in Perugia. No value for the transaction has been disclosed, according to the Il Sole 24 Ore newspaper. Colacem said that it was confident that the cement sector will have a ‘significant’ role in the future. HeidelbergCement’s subsidiary Italcementi acquired Cementir and the Spoleto plant in 2017. In February 2019 unions at the plant were told that the cement producer was selling it to the newly-created company Spoleto Cementir.
UAE: RAK Cement has postponed its acquisition of Newtech cement and the Al banna quarry due to incomplete financing. It previously announced the purchase in late February 2019. It planned to buy the assets for around US$123m.
Spain: Turkey’s Çimsa Çimento has purchased Cemex’s white cement business in Spain, including its Buñol plant, for around US$180m. Cemex expects to sign the final agreement in April 2019 and close this divestment during the second half of 2019. The proposed divestment does not include Cemex’s white cement business in Mexico, nor its interest in Lehigh Cement in the US.
“With the purchase of the Buñol white cement plant in Spain, we are upgrading our game in the white cement sector, the highest value-added business in the global cement market. With the integration of the Buñol white cement plant to our production and distribution networks, we will increase our white cement production capacity by 40%, translating into Çimsa becoming the world's largest white cement company,” said Tamer Saka, the president of Sabancı Holding Cement Group and chairman of Çimsa. He added that Çimsa is among Turkey’s leading exporters. In 2018 it generated over 50% of its operational profit from overseas operations.
Once a final agreement is reached the transaction is subject to standard regulatory approval.